Calculate your annual take-home pay instantly. Includes tax bands, National Insurance, student loans, and pension contributions for 2025/26.
TAX CALCULATOR
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Gross Salary
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Income Tax
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National Insurance
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Student Loan
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Pension
-£0.00
Net Annual
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Per Month
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Per Week
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Complete breakdown of tax bands and rates
| Tax Band | Income Range | Tax Rate |
|---|---|---|
| Personal Allowance | £0 – £12,570 | 0% |
| Basic Rate | £12,571 – £50,270 | 20% |
| Higher Rate | £50,271 – £125,140 | 40% |
| Additional Rate | £125,141+ | 45% |
Note: Personal Allowance tapers by £1 for every £2 earned over £100,000. This is reflected in our calculator.
Step-by-step breakdown of the calculation
Deduct £12,570 from gross salary. This is the amount you can earn tax-free.
What remains is your taxable income. Tax is applied to this amount at the relevant bands.
Tax is calculated progressively. £12,571–£50,270 at 20%, £50,271–£125,140 at 40%, and above at 45%.
Employees pay 8% on £12,570–£50,270 and 2% on earnings above £50,270.
Subtract student loan repayment, pension contributions, and any other deductions.
Understanding your NI contributions
National Insurance is a tax paid by employees and employers. It funds the state pension, unemployment benefits, and certain other welfare benefits.
Employees pay from their salary; employers pay separately on top of wages.
NI contributions count towards your state pension. The more you pay, the higher your state pension entitlement will be.
How the PA works and the high earner taper
The standard Personal Allowance for 2025/26 is £12,570. This is the amount of income everyone can earn tax-free.
Example: If you earn £35,000, only £22,430 is taxable (£35,000 - £12,570).
For every £2 you earn above £100,000, your Personal Allowance is reduced by £1.
At £125,140: Your PA is completely removed. Higher earners pay tax on all income above this.
All loan plans and their repayment rates
| Loan Plan | Threshold | Repayment Rate |
|---|---|---|
| Plan 1 (Pre-2006) | £24,990 | 9% |
| Plan 2 (2006-2012) | £27,295 | 9% |
| Plan 4 (England, 2012+) | £31,395 | 9% |
| Plan 5 (Scotland) | £25,000 | 9% |
| Postgraduate | £21,000 | 6% |
You repay 9% (or 6% for postgraduate) of anything you earn above your threshold. It's only owed if you're employed and earning above the threshold.
Legitimate ways to minimize your tax liability
Pension contributions are deducted from your gross salary before tax, giving you immediate tax relief. Contributing more reduces your taxable income.
Individual Savings Accounts (ISAs) let you save up to £20,000 per year tax-free. All interest and dividends are tax-exempt.
If you're self-employed, claim all business expenses. Ensure you're receiving all entitled allowances (Marriage Allowance, etc.).
When donating to charity, use Gift Aid. The charity recovers tax, and if you're a higher earner, you may claim additional relief.
If earning near your student loan threshold, consider whether extra income will significantly increase repayments.
Work with an accountant or tax advisor to optimize your tax position, especially if you have multiple income sources.
Common questions about UK income tax